Correlation Between Perseus Mining and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both Perseus Mining and Mayfair Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Perseus Mining and Mayfair Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining Limited and Mayfair Gold Corp, you can compare the effects of market volatilities on Perseus Mining and Mayfair Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Perseus Mining with a short position of Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Mayfair Gold.
Diversification Opportunities for Perseus Mining and Mayfair Gold
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Perseus and Mayfair is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp and Perseus Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Perseus Mining Limited are associated (or correlated) with Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of Perseus Mining i.e., Perseus Mining and Mayfair Gold go up and down completely randomly.
Pair Corralation between Perseus Mining and Mayfair Gold
Assuming the 90 days horizon Perseus Mining is expected to generate 1.14 times less return on investment than Mayfair Gold. But when comparing it to its historical volatility, Perseus Mining Limited is 1.46 times less risky than Mayfair Gold. It trades about 0.2 of its potential returns per unit of risk. Mayfair Gold Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 119.00 in Mayfair Gold Corp on September 2, 2025 and sell it today you would earn a total of 50.00 from holding Mayfair Gold Corp or generate 42.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Mayfair Gold Corp
Performance |
| Timeline |
| Perseus Mining |
| Mayfair Gold Corp |
Perseus Mining and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Mayfair Gold
The main advantage of trading using opposite Perseus Mining and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining position performs unexpectedly, Mayfair Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.| Perseus Mining vs. Newmont Goldcorp Corp | Perseus Mining vs. Agnico Eagle Mines | Perseus Mining vs. Wheaton Precious Metals | Perseus Mining vs. Zijin Mining Group |
| Mayfair Gold vs. ACG Metals Limited | Mayfair Gold vs. Fredonia Mining | Mayfair Gold vs. Paiute Oil Mining | Mayfair Gold vs. iA Financial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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